BoJ is said to likely keep rates unchanged on Sept. 19

BoJ is said to likely keep rates unchanged on Sept. 19

The Bank of Japan (BoJ) is widely anticipated to maintain its current monetary policy stance during its upcoming policy meeting on September 19, according to recent statements from political and economic figures. This decision comes amidst ongoing uncertainty about Japan's economic policies and the potential impact of the yen's value on inflation.

Liberal Democratic Party lawmaker and former digital transformation minister Kono Taro has been vocal about the need for the BoJ to raise its benchmark rate to support the yen and curb inflation [2]. However, the BoJ is expected to hold its settings steady at the upcoming meeting, despite calls for a rate increase. The central bank is widely expected to remain cautious in its policy decisions, given the recent political turmoil and uncertainty surrounding Japan's economic policies.

The yen has been trading around 147.35 to the dollar, weaker than its five-year average around 133.61. This trend has been attributed to the recent political instability and the potential for fiscal stimulus, which could boost inflation and weaken the yen further. The BoJ's decision to hold rates steady is seen as a cautious approach to avoid exacerbating these issues.

The upcoming leadership election within the Liberal Democratic Party (LDP) has added to the uncertainty, with candidates expressing differing views on monetary policy. Sanae Takaichi, a leading contender, has called for continued monetary easing and expanded fiscal stimulus, while Kono Taro has criticized the idea of shoring up voter support with cash handouts and has emphasized the importance of raising interest rates.

The BoJ's decision to hold rates steady is seen as a response to the current economic conditions and the need to maintain stability amidst political uncertainty. The central bank will continue to monitor inflation indicators and economic data closely to make informed policy decisions in the future.

References:
[1] https://www.moomoo.com/news/post/40379894/record-tr4cking-news-nasdaq-hits-new-intraday-record-s-p-500-rise-on
[2] https://www.bloomberg.com/news/articles/2025-09-09/japan-s-kono-says-boj-needs-to-hike-rate-to-fix-yen-inflation